Strategic Business Management: Resource Allocation, CRM & Expansion

This report provides a comprehensive overview of key business management concepts, focusing on Davison Canners, a fruit and vegetable preserving company in Carigavon, UK. It explores factors small businesses must consider when allocating resources to achieve their goals, emphasizing the importance of human resources, marketing, technology, finance, and competitor analysis. The report also discusses customer relationship management (CRM), detailing its operational, analytical, and collaborative aspects, along with their respective advantages and disadvantages. Furthermore, it examines transnational development strategies for international expansion, including leveraging the internet, joint ventures, and franchising, highlighting the benefits and drawbacks of each approach. The report also delves into break-even analysis, illustrating its application with a cost and revenue breakdown, and explains the significance of financial statements in improving business operations. Finally, it addresses the various types of legislation that affect small businesses, providing a well-rounded perspective on the challenges and opportunities in business management. Desklib provides similar solved assignments and study resources for students.

Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Understanding the factors small businesses need to consider in order choose correct resources
in achieving their goals and objectives...................................................................................1
Discussing the term Customer relationship management......................................................2
Discussing the term Transnational Development and how a business can expand
internationally.........................................................................................................................4
Describe the term Break-Even Analysis also explain how it could be applied to a business 6
Describe the term financial Statements also explain how the statements can be used to
improve the running of business.............................................................................................7
Explain the term Legislation also discuss all the different legislations that affect small
businesses...............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business management refers to the effective management of organizational resource
along with efficient coordination of business activities. It is a continuous process which enable a
business to perform its operation at optimal levels in order to achieve their overall goals and
objectives. For the following report Davison Canners is taken into consideration. Davison
Canners are a fruit and vegetable preserving manufacturing company situated in Carigavon, UK.
The following report will consist of understanding the crucial factors small business need to
consider for achieve their goals and objective. In addition to this help in understanding customer
relationship management along with transnational development. Moreover, it will include break-
even analysis and its application within a business along with financial statement of the chosen
company. Furthermore, it will discuss the various types of legislations that affect a small
business.
Understanding the factors small businesses need to consider in order choose correct resources in
achieving their goals and objectives.
It is crucial for a small businesses to identify the various factors that can affect the
functioning of their business. It is important to manage these factors in an effective manner to
utilize business resources in an optimal manner to achieve goals and objective (AL-kuwair,
Alshammari and Idan ., 2020). The various factors small businesses need to consider are
mentioned below:
Human resources:
The quality and capacity of a work force are essential for a small business as it enables
them to perform their business operations in an effective manner. In context to Davison Canners,
the human resource factor plays a key role in ensuring that all their business department have
capable employee's who will assist their organization in effectively achieving its goals and
objectives.
Marketing:
The factor of marketing is vital for small businesses as it helps them to promote their
products and services to the customers in an effective way. In context to Davison Canners,
marketing plays a key role in efficiently promoting its products and services to their customers.
Moreover, it helps them to establish themselves in the competitive market.
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Technological changes:
This factor has is important for small businesses as changes in technology can provide a
business with the ability to improve the functioning of its business process and promote
efficiency. In context to Davison Canners, technology has a key role in its business operations as
it helps them to manufacture their products in an effective and cost-saving manner (Arroteia and
Bhatta ., 2018). Moreover, it enables them to develop products in an effectively.
Finance:
The financial factor for small businesses are crucial as they are limited and need to be
allocated in a proper manner to maximize its effectiveness. In context to Davison Canners, the
financial manager of the company ensures all financial resources are allocated and managed in
an effective manner. Moreover, the financial manager focuses on keeping the business running to
generate profitability.
Competitors:
This factor is important for small businesses as they need to identity their competitors in
the market in order to develop suitable strategies to stay competitive. In context to Davison
Canners, the management focus on analysing the overall market to determine their competitors
and determine how to allocating their vital resources in an effective manner to gain market
competitiveness. Moreover, it helps them to determine their current position in the market and
develop suitable strategies to increase their performance.
Discussing the term Customer relationship management
The customer relationship management helps a business to gain vital information relative
to the behaviour of its customers. This enables them to alter their organizational operations to
provide customers with desired products and services. Moreover, it helps a to promote growth in
its customer base by enhancing connection between a business and its customers. The customer
relationship management consist of 4 aspects which are elaborated below with there respective
advantage and disadvantages.
Operations:
This aspect of customer relationship management focuses on automation and
management of customers-facing operations such as sales, customer service and marketing. In
context to Davison Canners, it provides assistance to the sales and customer service department
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of the company to perform their effectively and ensure they provide the customers with
necessary assistance while purchasing products and services.
Advantages Disadvantage
 Helps to establish connection between
business and company.
 Helps a business to improve its sales
and profitability.
 Requires capable human resources to
be effective.
 Can be a complex and costly process.
Analytics:
The analytical aspect of the customer relationship management focuses on analysing
customer related data for various purposes such as customer specific campaign or targeting a
specific market (Arvanitis and Estevez ., 2018). In context to Davison Canners, this aspect helps
their management team to understand its customer base and develop effective strategies in order
to target a market and launch campaigns to attract customers to their business.
Advantages Disadvantage
 It helps to understand the customers
needs.
 Helps to target a specific market and its
customers.
 The data collection process can be time
consuming.
 The changes in trends can make
previous collected data obsolete.
Collaboration:
This aspect pays emphasis to the direct interaction of a business with its customers in
order to gain vital information such as customer feedback and report of any issues though
automated calls and emails. In context Davison Canners, their customer service team collect
valuable feedback from customers through emails and call in order to establish an effective
connection between the company and customers. Moreover, it helps the business to address any
gaps in their operations based on the feedback.
Advantages Disadvantage
 Promotes a positive engagement  The collection of data is a time
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between business and customers.
 Helps to gain valuable feedback from
customers to improve business
performance.
consuming and a costly process.
 The customers engagement may not
always be optimal making the data less
credible
Discussing the term Transnational Development and how a business can expand internationally.
The transnational development refers to a process when a business plans to venture into
the international market in order to expand its overall market share. The businesses focus on
transnational development in order to achieve growth for their business and expand their
customer base in the internal market. Moreover, it is crucial for a business to develop an
effective transnational strategy in order to understand the exiting market competitors and its
environment in new market (Bai, Fairhurst and Serfling ., 2020). The various ways through
which a business can expand into the international market are elaborated below along with their
respective benefits and drawbacks:
Internet:
In the modern-day businesses irrespective of their size can venture into the international
market by effectively utilizing the internet. This form of international expansion is cost effective
and has less chances of failure. In context to Davison Canners, they can expand their business to
the international market by establishing an online store. This will help them to provide their
products to customers around the world in an cost effective manner.
Benefits Drawbacks
 This method of expansion is cost
effective.
 It requires less resources in order to
enable businesses to expand
internationally.
 All businesses in respective of their size
can use this method.
 Require skills personal in order to look
after technical aspect of this method.
 Customers do not trust online stores
without credibility.
 High-level of competition is available
on the internet.
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Joint-venture:
The joint-venture refers to establishing a collaboration with another business in order to
run an organization. This helps businesses to enter the internation market and build strong
relations with an established business in the region. This assist businesses to enter a competitive
market without major barriers to entry. In context to Davison Canners, the management can
collaborate with an already established business in the internal market and work with them to
provide their products and services to customers in the new market without any hindrances from
existing competition.
Benefits Drawbacks
 It can help businesses to enter a new
international market with few barriers
to entry.
 Increases the overall capacity of
businesses in their functioning.
 The ability to share risk in case of
failure of business.
 There can be difference in functioning
of business between organizations.
 The level of expertise and investment
are unequal.
 Laps of communication between both
businesses can if inefficient.
Franchise:
The franchise refers to a business that has given its rights to an another business to sell its
products and services under their name. This helps a business to expand their operation in the
international market in an effective and efficient manner. In context to Davison Canners, the
management can provide franchises around the world and expand their market internationally
(Chen and Zhao ., 2018). This will enable them to reach a larger customer base and increase their
growth and profitability.
Benefits Drawbacks
 The risk of failure in business is
reduced.
 Helps to establish new market share
with less investment.
 It requires constant monitoring to
ensure international operations are
effective.
 Fault in quality by a franchise can
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 It helps small business to compete with
larger organizations.
create bad reputation of the business.
 Franchise have high rate of failure
compare to other methods of
international expansion.
Describe the term Break-Even Analysis also explain how it could be applied to a business
Break even analysis is a method used by the business organisation in order to determine the
level of fixed costs in term of the profit earned by each additional unit produced and sold. It
allows the business organisation to determine at what point the business or new product and
service offered by the business organisation will become profitable. It also helps the investors to
analyse the point at which the they will recoup their investment and will lead to start making the
money. The break even plays an essential role for the small business in determining their growth
in the marketplace (Lee, 2021). It is one of the essential accounting process for analysing their
point of profit. In context to the chosen company, the Break even analysis will help the
organisation to determine their point of profit, as well as well as it will also help them to analyse
the number of product and service needed to be sold out by them in order to cover their
production cost effectively and efficiently. In context to chosen company the break even analysis
is mentioned below:
Cost structure:
Particulars Amount (In
pound)
Variable costs
Salaries to staff 550000
Advertisement 280000
Rent of building 280000
Fixed costs
Machines 600000
Cost of material 800000
Total cost 2510000
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Revenue stream:
Particulars Amount (In
pound)
Selling of food plates 1500000
Online bookings 950000
Advances from clients 510000
Further developments 500000
Total revenues 3460000
BEP in units
= 1400000 / 7.83
= 178799 units
BEP in Pound
=1400000 / 67.92%
= 2061249
Describe the term financial Statements also explain how the statements can be used to improve
the running of business.
Financial statement is defined as the formal records of all the financial task or activities
and position of the business. It is also the written records that helps in determining the overall
performance of the business in the marketplace. The main financial statements of the company
include balance sheet, income statement, cash flow and so on. These statements helps in
determining the financial condition of the company. The balance sheet of the company includes
the detailed report of company's assets, liabilities, and owner’s equity at given time (Ra and et.
al., 2021). Similarly the income statement of the company is a statement of their overall profit
and loss incurred, it helps in determining whether a facing is facing loss or earning profit which
leads to analysing the position of the company at the marketplace. Additionally, the cash flow
statement includes detailed report on the company's cash flow activities, such as its operating,
investing and financing activities. It helps in analysing the cash inflow and outflow in the
organization. In context to chosen company, it is analysed that company is effectively determine
their financial statements, it helps them to perform better and continue to gain competitive
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advantage in the marketplace. In context to chosen company, to determine the financial position
of the company the financial statement is highlighted below:
Financial statement (Cash flow analysis)
Particulars Amount (In
pound)
Receipts
Selling of food plates 1500000
Online bookings 950000
Advances from clients 510000
Further developments 500000
Total receipts 3460000
Payments
Salaries to staff 550000
Advertisement 280000
Rent of building 280000
Machines 600000
Cost of material 800000
Total payments 2510000
Cash at the end 95000
From the above cash flow statement it is analysed that the company's is performing well in
the market with effective amount of cash inflow. It is also analysed that the financial position of
the company is good in the marketplace which leads them to continue to gain success and expand
their business in the international market (Salazar, 2020). Regular analysis of the financial
statements will help the company to determine their financial needs and required activities to be
carried out, leading them to perform better.
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Explain the term Legislation also discuss all the different legislations that affect small
businesses.
The term legislation is defined as the process of preparing and enacting of various laws
through local, states and national legislatures. These are the laws implemented by the
government in order to protect the business, employees and consumers from any kind of
wrongful acts. In case of Davison Canner, the manager needs to ensure that they are functioning
within the laws in order to determine the safe and fair treatment of any party involved in the
business effectively (Winfree, 2019). Some of the legislation in context to company are
mentioned below:
Employment act 1996: One of the essential that is needed to be followed by each and
every organisation is the employment act 1996. This law was incorporated with the aim of
protecting employment rights covering areas such as unfair, dismissal, unfair compensation,
protection of wages, Zero hour contract, and termination of employment and so on. In context to
Davison Canner, the manager needs to ensure that employees rights are protected, they are
offered equal wages and proper working hours are maintained.
Data protection act 1998: Another essential law that is needed to be followed by the
business organisation is the data protection act, this act is focused on protecting personal data of
the customers or employees. This act allows the business organisation to process the personal
information fairly and lawfully. In context to Davison Canner, manager needs to ensure that the
personal information of the customer's is being used fairly as well as if required personal
information is processed for specified reasons only. Also in case of any kind of wrongful act
required actions are taken by the company (Young, 2020).
Company law 2006: Another essential law is the company’s law, this act is considered to
be the main law governing the company law across UK. The main aim of this law is to
modernise and simplify company law, to codify director’s duty effectively as well as grant rights
to the shareholders. In context to chosen company, the manager needs to ensure that they are
following required laws in order to smoothly carry out their activity and achieve desired goals
and objectives.
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CONCLUSION
From the above report it is concluded that, there are various factors that small businesses
need to consider in order to maximize their perforce in the market. This also enables them to
utilize their resources in an efficient manner to achieve their goals and objectives. In addition to
this it was observed how customer relationship is vital for businesses in order to establish a better
engagement between a business and customer base. Moreover, the report highlighted how
businesses can expand into the international market by using various expansion methods.
Furthermore, it was observed in the report that the company is financially stable and has a
positive break even analysis. It also focuses on various legislation laws that the business must
follow in order to avoid any legal hindrances in their business operations.
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